CASES
Green Mountain Coffee Roasters, Inc.
Class Period: Jul 28, 2010 to Sep 29, 2010
Lead Plaintiff Deadline: Nov 29, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Green Mountain Coffee Roasters, Inc. (GMCR) ("Green Mountain" or the "Company") on behalf of all securities purchasers from July 28, 2010 through September 28, 2010, inclusive ("Class Period"), in the United States District Court of Vermont.
The complaint alleges that Green Mountain artificially inflated the Company's stock price during the Class Period by issuing inaccurate and unreliable financial statements, which were not prepared in accordance with GAAP and SEC rules. The Complaint further alleges that on August 28, 2010, Green Mountain completed a sale of 8,566,649 shares of its common stock to Luigi Lavazza, for an aggregate purchase price of $250 million, despite the fact that the Company knew its reported financial statements were untrue and that it lacked adequate systems of internal operational and financial controls.
The complaint further alleges that on September 28, 2010, following the close of trading, shareholders first learned that Green Mountain was the subject of an SEC investigation into its revenue recognition, that it had been notified by the SEC of this investigation as early as September 20, 2010, and that the Company was also expected to take a restatement charge in the near term -- rendering the Company's prior reported financial statements and reports unreliable, false, and materially misleading. Following this announcement, shares of the Company immediately declined in after-market trading.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.